Interest Rate

Australian Dollar Falls; One Rate Increase Tomorrow May Suffice
Aug. 1 (Bloomberg) --
The Australian dollar fell on speculation the central bank, after raising interest rates tomorrow, will signal borrowing costs will then stay on hold.
Bets for two more rate increases this year helped the currency gain 2.8 percent over the past month.
The Reserve Bank of Australia hasn't discussed its outlook on rates since Deputy Governor Glenn Stevens said July 13 the move to lift rates in May hadn't tempered consumer confidence.
Stevens was named as the new governor of the bank today. ``We will get a move in interest rates tomorrow and then the RBA will say they won't do anything for a while,'' said Jonathan Barratt, head of foreign exchange and metals at Tricom Futures Pty. ``We'll get some selling of the Australian dollar when the market realizes the rate increase is a one-off.''